31. The following agreements are covered by the Statute of Fraud. Choose the exception.

a. An oral agreement which by its terms is not to be performed within one year from the making
thereof.
b. An oral special promise to answer for the debt, default or miscarriage of another.
c. An oral agreement in consideration of marriage.
d. An oral contract of partnership where the contribution in money or personal property
amounts to ₱3,000 or more.
e. None of the above.

32. A deaf mute who knows how to write enters into a contract with an insolvent person after his
discharge, the contract is:
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
e. Void

33. One of the following statements concerning ratification of a voidable contract is false. Which one
is it?
a. Ratification extinguishes the action to annul a voidable contract.
b. Ratification cleanses the contract from all its defects from the moment it is constituted.
c. Ratification requires the conformity of the party who has no right to bring the action for
annulment.
d. Ratification may be made by the guardian of the incapacitated person, or the incapacitated
person upon attaining capacity, or the party whose consent was vitiated.

34. Three of the following are void contracts. Which one is the exception?
a. Contracts where the causa is immoral
b. Contracts to prevent a known supporter of a political rival from voting his candidate for a
valuable consideration.
c. Contracts with valid consideration but with unlawful motives.
d. Absolutely simulated contracts.

35. B fraudulently induces S to sell to him (B) a masterpiece painting for ₱10,000. Subsequently, B
sold it to X for ₱12,000, a good faith purchaser. S is entitled to
a. Rescind the contract with B plus damages
b. Recover the painting from X but no damages
c. Recover damages from B
d. Rescind the contract between B and X

36. S, an employee of a private company, sold his car for ₱100,000 to B, whom he knew was only 17
years old. S delivered the car to B who immediately paid the amount of ₱100,000. Later, S was
transferred to another branch of his employer which was quite a distance from his residence. He
wanted to get back the car from B so that he will have something to use in going to and from his
new office. Neither B or his guardian has registered the sale with the LTO.
a. S can file an action to annul the sale he made to B because he was mistaken in selling the car
which he realized he badly needed.

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 b. S can ask the court to annul the sale because B was a minor when the contract of sale was
entered into.
c. Only B, when he attains the age of majority, or his guardian, while B still a minor, can bring an
action to annul the contract.
d. The minority of B has no effect on the validity of the contract since the parties entered into
the contract of sale freely.

37. Which of the following is correct?

a. An action to enforce judicially a natural obligation prescribes in 4 years.
b. An action for annulment of contract is imprescriptible.
c. An action to declare a contract void is not subject to prescription.
d. An action for rescission of the contract prescribes in five (5) years counted from the execution
of the contract.

38. S sometime in 2009 sold to B a house and lot where the former committed fraud. The deed
which was in public document was registered with the Register of Deeds in 2010. In 2012, the
fraud was discovered by the heirs of B. Under the Law, the action to annul a contract based on
fraud must be filed within four (4) years from:
a. Year 2009 the date of the contract
b. Year 2010 the date of registration with the Registration of Deeds
c. Year 2012 the date the fraud was discovered
d. The action to annul the contract based on fraud is not a subject to prescription.

39. A piece of land was the subject of a litigation between Mariano and City of Manila. After the
case had been decided in favor of Mariano, he sold it to Bugaring.
a. The sale can be rescinded because the subject matter is the subject of litigation.
b. The sale cannot be rescinded because the litigation had been in favor of Mariano prior to the
sale.
c. The sale can be rescinded because it is considered an act to defraud creditor.
d. The sale cannot be rescinded because of the disposition of the things under litigation without
the approval of the ligitant or competent court is not ground for rescission to prosper.

40. Angelita Madaya, guardian of Nene Batambata, a minor, sold the palay harvested from the land
belonging to Nene Batambata for ₱39,000 on January 15, 2016. The palay had a value of
₱80,000. At the time of the sale, Nene Batambata was only seventeen years and 354 days old.
On July 25, 2020, Nene wants to recover the damages she suffered under the contract entered
into by her guardian. What is the remedy available to Nene Batambata?
a. Annulment because Nene Batambata was only 17 years and 354 days old at the time the sale
was made by her guardian.
b. Rescission because Nene Batambata suffered lesion of ₱41,000.
c. Both rescission and annulment at the option of Nene Batambata.
d. Nene Batambata cannot rescind nor annul the contract.

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